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 Que.1 If employee do not have any child or he is unmarried or his child is very small(1-2years)then shall he receive children education allowance? Que.2 Employee have 3 children and he receive Rs.80 per month as children education allowance then exemption he receive will be? Sol. Actual amount received =Rs.2880 Amount specified in rule 2BB = Rs. 2400 whichever is less is exempted i.e Rs. 2400is exempted or RS.1920 is exempted.........please clear it



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For the 1st part i guess the amount has to be actually spend to claim exemption us 10(14)

For the second its upto 100 per child for 2 children..here amount spend is 80 for 3 children..so exemption is 80 *12 * 2..i e 1920

 i need a soft copy of compliance certificate format, under companies act 1956

for Second part exempt Amount is Rs. 2400/- it does not iclude actually spent.

Education allowance is exempt for two children.

if person is unmarried, or dont have children, or children is not studying than for what he is getting education allowance. employer is not foolish.

if given education allowance will be fully taxable.

 

in second part 1920 will be taxable. 2400 is not written in act. written is maximim Rs. 100 per month for maximum of 2 children is exempt. if he is getting 80 then Rs. 80 is exempt

 

Dear Anuj,,

ans 2 que 1....Since assessee is unmarried or has very small children therefore the total amount received by him is taxable and hence no deduction available under 10(14)

 

ans 2 que 2....Children Education allowance is exempt upto Rs. 100 P.m. this means that if assessee is receiving only Rs 80 p.m. than only Rs. 80 p.m would be exempt for maximum 2 children assumin dat in the second case assessee's children are actually going to school....

Originally posted by :Hemchand
" for Second part exempt Amount is Rs. 2400/- it does not iclude actually spent. "

 10(14) is based on the amts given in the section or amount spend which ever is lower basis...not actual amount spend

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